Revenue Management Final Exam
What is the main reason that travelers today have more clout than ever before? - ANS-
They have information on virtually everything at their fingertips.
Revenue Management is NOT necessarily about... - ANS- Achieving 100 % occupancy
and a perfect science
The Hurdle Rate is...? - ANS- The Lowest Rate for a Given Day
A benefit of variable pricing within revenue management is the smoothing of demand.
T/F - ANS- True
Revenue management is a set of revenue maximization strategies and tactics that... -
ANS- can be used to improve the profitability of certain businesses.
In January, the 200-room SnowBound Inn ran a skiers special that resulted in them
selling 5,735 rooms during the month. What was the occupancy percentage for the
month? - ANS- Occupancy % = Room nights sold in a period / Room nights available in
that period
Answer: 5,735 / (200x31) = 5,,200 = 92.5%
When the American Airlines CEO developed yield management, what type of
information was crucial to its success? - ANS- forecasting
The goal of revenue management is to MAXIMIZE REVENUE per Available
Time-Based Inventory Unit (or RevPATI). RevPATI formula applied to all industries
translates into...? - ANS- Capacity Utilization x Average Revenue per Service
Transaction
Which of the following is NOT a criterion needed for an industry to unlock the full
potential of revenue management? - ANS- low fixed costs and high variable costs
To interpret measures of a hotel's performance, managers often compare those
measures with: - ANS- industry or sector averages, the budget for the period, and
historical figures from comparable earlier periods at the hotel.
, Which of the following statements about hotel revenue management is FALSE? - ANS-
Revenue management is new, as are all of the strategies that are employed to
maximize profit.
Revenue Management includes a multidisciplinary management techniques applied to
several sub-sectors of the hospitality. Which of the following is NOT one discipline within
Revenue Management? - ANS- Logistics Management
Identify which of these is not a positive of using revenue management strategies and
tactics: - ANS- Motivate employees
If a 300-room hotel achieves 70 percent occupancy for April at an ADR of $153 per
room, what will room revenue equal? - ANS- $963,900
What is the main reason that travelers today have more clout than ever before? - ANS-
They have information on virtually everything at their fingertips.
Revenue management can be defined as - ANS- A set of strategies and techniques
used to sell the right product, to the right customer, at the right time and at the right
prices.
When might a revenue manager choose without questions to accept a less profitable
group booking over more profitable transient business? - ANS- The group is a regular
customer of the hotel or a key account group from your comp set.
What information is needed to calculate a net room rate? - ANS- room rate, variable
costs, and all costs and fees that apply to the booking
An individual traveling, dining, attending a game or performance, or staying alone is
usually referred to as a ______________. This type of guest may be also be defined as
an individual hospitality customer. Think of a single person purchasing an airline seat, a
meal, a ticket, or a hotel room; in RM we call this type of customer a: - ANS- Transient
Displacement Analysis can determine the quantifiable benefits of different options.
However it needs to have the right circumstances. When is it appropriated? - ANS-
When a reliable forecast indicates that there's more demand than our capacity, it will be
a period of high demand
Displacement analysis is a RM decision making and comparative scenarios tool with
four step process: (1.) ________________________________; (2.) Establish the net
What is the main reason that travelers today have more clout than ever before? - ANS-
They have information on virtually everything at their fingertips.
Revenue Management is NOT necessarily about... - ANS- Achieving 100 % occupancy
and a perfect science
The Hurdle Rate is...? - ANS- The Lowest Rate for a Given Day
A benefit of variable pricing within revenue management is the smoothing of demand.
T/F - ANS- True
Revenue management is a set of revenue maximization strategies and tactics that... -
ANS- can be used to improve the profitability of certain businesses.
In January, the 200-room SnowBound Inn ran a skiers special that resulted in them
selling 5,735 rooms during the month. What was the occupancy percentage for the
month? - ANS- Occupancy % = Room nights sold in a period / Room nights available in
that period
Answer: 5,735 / (200x31) = 5,,200 = 92.5%
When the American Airlines CEO developed yield management, what type of
information was crucial to its success? - ANS- forecasting
The goal of revenue management is to MAXIMIZE REVENUE per Available
Time-Based Inventory Unit (or RevPATI). RevPATI formula applied to all industries
translates into...? - ANS- Capacity Utilization x Average Revenue per Service
Transaction
Which of the following is NOT a criterion needed for an industry to unlock the full
potential of revenue management? - ANS- low fixed costs and high variable costs
To interpret measures of a hotel's performance, managers often compare those
measures with: - ANS- industry or sector averages, the budget for the period, and
historical figures from comparable earlier periods at the hotel.
, Which of the following statements about hotel revenue management is FALSE? - ANS-
Revenue management is new, as are all of the strategies that are employed to
maximize profit.
Revenue Management includes a multidisciplinary management techniques applied to
several sub-sectors of the hospitality. Which of the following is NOT one discipline within
Revenue Management? - ANS- Logistics Management
Identify which of these is not a positive of using revenue management strategies and
tactics: - ANS- Motivate employees
If a 300-room hotel achieves 70 percent occupancy for April at an ADR of $153 per
room, what will room revenue equal? - ANS- $963,900
What is the main reason that travelers today have more clout than ever before? - ANS-
They have information on virtually everything at their fingertips.
Revenue management can be defined as - ANS- A set of strategies and techniques
used to sell the right product, to the right customer, at the right time and at the right
prices.
When might a revenue manager choose without questions to accept a less profitable
group booking over more profitable transient business? - ANS- The group is a regular
customer of the hotel or a key account group from your comp set.
What information is needed to calculate a net room rate? - ANS- room rate, variable
costs, and all costs and fees that apply to the booking
An individual traveling, dining, attending a game or performance, or staying alone is
usually referred to as a ______________. This type of guest may be also be defined as
an individual hospitality customer. Think of a single person purchasing an airline seat, a
meal, a ticket, or a hotel room; in RM we call this type of customer a: - ANS- Transient
Displacement Analysis can determine the quantifiable benefits of different options.
However it needs to have the right circumstances. When is it appropriated? - ANS-
When a reliable forecast indicates that there's more demand than our capacity, it will be
a period of high demand
Displacement analysis is a RM decision making and comparative scenarios tool with
four step process: (1.) ________________________________; (2.) Establish the net
